SINGAPORE, July 20 (Reuters) - CBOT September wheat WU26 may retest a resistance at $6.89-1/2 per bushel, a break above which could lead to a gain into the $6.97-1/2 to $7.02-3/4 range.

The uptrend is presumed to be developing within a rising channel, which provides support around $6.77. The contract is expected to stabilize around this support and resume its rise.

A break below $6.77, however, could trigger a drop into the $6.64-1/4 to $6.69 range. On the daily chart, the wave pattern suggests the development of a very powerful wave 3, the fiercest among all the waves of the uptrend from $5.74.

As long as the market hovers above $6.73-3/4, this bullish wave count will remain valid. The bullish outlook will have to be modified, once the contract breaks this level.

* Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are exclusively published on the Workspace platform - a London Stock Exchange product.

** No information in this analysis should be considered as being business, financial, or legal advice. Each reader should consult their own professional or other advisers for business, financial, or legal advice regarding the products mentioned in the analyses. ​

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